RSA Security has spun out its fraud and risk intelligence business into a standalone company called Outseer that will double down on payment security tools amid an “unprecedented” rise in fraudulent transactions.
Led by CEO Reed Taussig, who was appointed head of RSA’s Anti-Fraud Business Unit last year after previously serving as CEO of ThreatMetrix, the new company will focus solely on fraud detection and management and payments authentication services.
Outseer will continue to operate under the RSA umbrella and will inherit from the company three core services, which are already used by more than 6,000 financial institutions: Outseer Fraud Manager (formerly RSA Adaptive Authentication), a risk-based account monitoring service; 3-D Secure (formerly Adaptive Authentication for eCommerce), a card-not-present and digital payment authentication mapping service; and FraudAction, which detects and takes down phishing sites, dodgy apps and fraudulent social media pages.
Outseer says its product portfolio is supported by deep investments in data and science, including a global network of verified fraud and transaction data, and a risk engine that the company claims delivers 95% fraud detection rates.
Commenting on the spinout, Taussig said: “Outseer is the culmination of decades of science-driven innovation in anti-fraud and payments authentication solutions. As the digital economy continues to deepen, the Outseer mission to liberate the world from transactional fraud is essential. Our role as a revenue enabler for the global economy will only strengthen as every digital business continues to scale.”
RSA, meanwhile, will continue to focus on integrated risk management and security products, including Archer for risk management, NetWitness for threat detection and response and SecureID for identity and access management (IAM) capabilities.
The spinout comes less than a year after private equity firm Symphony Technology Group (STG), which recently bought FireEye’s product business for $1.2 billion, acquired RSA Security from Dell Technologies for more than $2 billion. Dell had previously acquired RSA as part of its purchase of EMC in 2016.
It also comes amid a huge rise in online fraud fueled by the COVID-19 pandemic. The Federal Trade Commission said in March that more than 217,000 Americans had filed a coronavirus-related fraud report since January 2020, with losses to COVID-linked fraud totaling $382 million. Similarly, the Consumer Financial Protection Bureau fielded 542,300 fraud complaints in 2020, a 54% increase over 2019.
RSA said that with the COVID-19 pandemic having fueled “unprecedented” growth in fraudulent transactions, Outseer will focus its innovation on payments authentication, mapping to the EMV 3-D Secure 2.x payment standard, and incorporating new technology integrations across the payments and commerce ecosystem.
“Outseer’s reason for being isn’t just focused on eliminating payments and account fraud,” Taussig added. “These fraudulent transactions are often the pretext for more sinister drug and human trafficking, terrorism, and other nefarious behavior. Outseer has the ability to help make the world a safer place.”
Valuation information for Outseer was not disclosed, nor were headcount figures mentioned in the spinout announcement. Outseer didn’t immediately respond to TechCrunch’s request for more information.